Today the Living Wage Foundation is delighted to mark a historic milestone in the life of the Living Wage campaign as Ikea becomes the first major retailer in the UK to commit to becoming a Living Wage accredited employer.
Rhys Moore, director, Living Wage Foundation said:
We are delighted with the news that Ikea, one of the UK’s major players in the retail sector, has announced its intention to accredit as a Living Wage employer. This is a huge step in the life of the Living Wage movement and sends out a clear marker to the sector that businesses that can, should pay the voluntary rate, which is calculated according to the cost of living. The news is particularly timely given the recent announcement by the Chancellor who described the new, higher rate of the statutory minimum wage for over 25’s as a ‘national living wage’. Leading businesses, and increasingly consumers, recognise the need for a distinction between the rates. The Living Wage is a mark of responsible businesses, with accredited Living Wage companies choosing to go above and beyond the legal minimum.
IKEA’s accreditation will see all employees across the UK receive a basic rate of pay of at least £7.85 p/h whilst employees in the capital will be paid the London Living Wage rate, currently set at £9.15.
The Mayor of London Boris Johnson MP said:
I am absolutely delighted that IKEA has become the first major retailer to sign-up to the voluntary Living Wage, rewarding their hard-working employees for their loyalty and their valuable contribution to the productivity and growth of the economy. There is no doubt that the London Living Wage is a win-win scenario for the workforce and employers alike, boosting quality of life and workplace morale which in turn increases productivity. I have long argued that those companies who can afford to pay the London Living Wage should do so, and I urge big businesses to follow IKEA’s fantastic example and do the right thing by signing up to this scheme.
The Living Wage Foundation has now accredited over 1,600 businesses, including nearly a quarter of the FTSE 100 and well-known companies such as Nestle, Nationwide and British Gas.
Rhys Moore continued:
We welcome the huge step the Chancellor has taken on low pay. This is a massive victory for Citizens UK and those communities, workers and business leaders who have campaigned for a Living Wage since 2001. A strong national minimum wage is a fantastic boost to the Living Wage movement but the issue remains that for many UK employees, despite working hard, their rates of pay simply don’t cover the costs of living. The Living Wage remains key to tackling in-work poverty in the UK.
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